Moving money to another country for better interest rates

[Jazzman]

Kev, there’s probably a few of us who share some of your views, and yes, things are pretty frustrating. I’m waiting to see what 2015 brings, and have found RE to be about the best investment if you do your research, and are prepared for a few bumps along the learning curve.

[Jazzman]

[quote=livinincali]
The other potential problem is capitol controls. So you can get your money stuck over there. For example they just recently passed this capitol control.

The limit on personal remittances has been cut to $75,000 per year, from $200,000 per year.

That would mean even if you saw things changing where it was a bad investment to be in India it would take you 3 years to get your money back out. A lot can happen in 3 years.[/quote]

Unless of course you had a dollar account in India.

[livinincali]

[quote=Jazzman][quote=livinincali]
The other potential problem is capitol controls. So you can get your money stuck over there. For example they just recently passed this capitol control.

The limit on personal remittances has been cut to $75,000 per year, from $200,000 per year.

That would mean even if you saw things changing where it was a bad investment to be in India it would take you 3 years to get your money back out. A lot can happen in 3 years.[/quote]

Unless of course you had a dollar account in India.[/quote]

You earn no interest on a dollar account in India. So it completely defeats the purpose.

[quote]
The RBI said the Resident Foreign Currency (Domestic) Account can be opened with a licensed bank which is also an authorised dealer in foreign exchange. By this criteria, most of the banks would be able to offer the dollar account facility to their clients.
Since the account will be maintained in the form of a current account, there will, of course, be no interest earned on the balance, a foreign exchange dealer explained.
[/quote]

[FlyerInHi]

kev, if you’re Indian-American, you should know of investment opportunities in India better than us.

how is the real estate market over there? maybe buy a condo for rent in Mumbai? I think the holding costs such as property taxes over there are low.

I wish I knew of investment opportunities abroad.

[Jazzman]

[quote=livinincali][quote=Jazzman][quote=livinincali]
The other potential problem is capitol controls. So you can get your money stuck over there. For example they just recently passed this capitol control.

The limit on personal remittances has been cut to $75,000 per year, from $200,000 per year.

That would mean even if you saw things changing where it was a bad investment to be in India it would take you 3 years to get your money back out. A lot can happen in 3 years.[/quote]

Unless of course you had a dollar account in India.[/quote]

You earn no interest on a dollar account in India. So it completely defeats the purpose.

[quote]
The RBI said the Resident Foreign Currency (Domestic) Account can be opened with a licensed bank which is also an authorised dealer in foreign exchange. By this criteria, most of the banks would be able to offer the dollar account facility to their clients.
Since the account will be maintained in the form of a current account, there will, of course, be no interest earned on the balance, a foreign exchange dealer explained.
[/quote][/quote]
No interest on USD anyway, but I get interest on my foreign currency accounts. You saying in India you don’t?

[kev374]

You do get interest on Dollar accounts in India but it is very low… I think currently around 3% which does not make it worth the hassle.

As I said earlier given the virtually zero interest rate environment in the US, and the fact that I strongly believe that interest rates are going to stay very low for the foreseeable future.

By having a high interest bearing account overseas it’s a win-win whether there is deflation or inflation here in the US. If there is deflation the profits are even more amplified, if there is inflation then it’s a hedge against that preseving your capital.

There is no chance for higher interest rates in the US as I strongly believe that if interest rates rise the entire economy will fall apart. We will have a situation like Japan with super low interest rates for a very very long time, perhaps even a decade or more…Japan has had ultra low interest rates for 2 decades!!! There is no reason the same cannot repeat here.

I’ll say it again – the RISK of doing nothing when the government is seriously devaluing the currency can be catastrophic for your future!!! This is true especially if you are a saver like me who has no debt and has most of my savings liquid and not invested in the stock market.

Up until recently money printing and inflation was only a theory, but in the last couple of years I can very SERIOUSLY see huge effects in my day to day life… the cost of everything from my rent, to groceries to eating out at restaurants is seriously going up!! Nobody seems to give a crap but to me the trend is very concerning.

[scaredyclassic]

Gold?

[scaredyclassic]

I think a lot of India believe in holding gold.

[kev374]

gold is very volatile, holding gold can be risky as it has major swings. People also tend to over speculate in gold and it’s hard to know if it’s in a bubble or it’s value is intrinsic due to organic demand.

[scaredyclassic]

As opposed to rupees, which have greater intrinsic value?

[Coronita]

[quote=kev374]gold is very volatile, holding gold can be risky as it has major swings. People also tend to over speculate in gold and it’s hard to know if it’s in a bubble or it’s value is intrinsic due to organic demand.[/quote]

Unless you plan to be moving around again… I still think in your particular situation, looking into buying a 1/1 for you to live in is probably the best return on your money.

1. You were complaining about paying an arm and a leg for rent a few weeks ago.

2. Even if 1/1’s are inflated, have you bothered to run the numbers to see what sort of payments you would be making with a standard 20% down, and current rate of around 4.3% for a 30 year…

If you’re able to find a 1/1 for $250k….
20% down on a 30 year fixed @ 4.3% is $990/month
HOA say is $200/month
Property tax @ 1.25% = $260/month.

Your monthly cost is $1420/month, before your Schedule A deductions on mortgage interest… Didn’t you say you were paying about $1300/month+ month on rent.., plus bending over by paying an additional $300-400/month to store your motorcycle and other personal items???

But instead, you’re thinking of moving your money to india so your can earn maybe 6-7% interest overseas after the exchange rates fees, etc…. And then when/if you do earn that questionable 6-7%, you’re going to probably pay 20-25% in federal+state income taxes on that, given that I believe you’re an engineer probably making around $100k-$150k, before any additional comps like bonuses, stock vesting etc (more if you do make that)…assuming you are on W2 and have very little in terms of itemized deductions otherwise….(If you’re a contractor with a 1099, perhaps you have more variables to play with)….

[scaredyclassic]

Looking for stability in an inherently unstable system is like looking for a good night’s sleep in a war zone.

All one can do is make a best guess and hope for the best.

Given your guess, I’d tend to agree that buying a place and hunkering down might not be a bad bet.

But given the choice of holding dollars rupees and gold, say over the next 15 years? Much more likely you’ll see 100 perc. Gain on only one of them.

[spdrun]

.

[joec]

[quote=flu]
Unless you plan to be moving around again… I still think in your particular situation, looking into buying a 1/1 for you to live in is probably the best return on your money.

1. You were complaining about paying an arm and a leg for rent a few weeks ago.

2. Even if 1/1’s are inflated, have you bothered to run the numbers to see what sort of payments you would be making with a standard 20% down, and current rate of around 4.3% for a 30 year…

If you’re able to find a 1/1 for $250k….
20% down on a 30 year fixed @ 4.3% is $990/month
HOA say is $200/month
Property tax @ 1.25% = $260/month.

Your monthly cost is $1420/month, before your Schedule A deductions on mortgage interest… Didn’t you say you were paying about $1300/month+ month on rent.., plus bending over by paying an additional $300-400/month to store your motorcycle and other personal items???

But instead, you’re thinking of moving your money to india so your can earn maybe 6-7% interest overseas after the exchange rates fees, etc…. And then when/if you do earn that questionable 6-7%, you’re going to probably pay 20-25% in federal+state income taxes on that, given that I believe you’re an engineer probably making around $100k-$150k, before any additional comps like bonuses, stock vesting etc (more if you do make that)…assuming you are on W2 and have very little in terms of itemized deductions otherwise….(If you’re a contractor with a 1099, perhaps you have more variables to play with)….[/quote]

This has been my point as well with a few of my posts. For some folks, the home tax deductions you can get are huge. Right off the bat, assuming your rent is what flu listed, you’d be below your rental cost assuming you had any avg income…

Seems so much easier to just do some simply things to get better returns that are a lot safer.

[scaredyclassic]

Yeah but…

What if a guy just wants to save money.

A house ultimately is a disintegrating consume able item destined to cost a fortune in maintenance as it slowly decays.

A gold coin had purchasing power in ancient Rome and it has purchasing power today.

I oppose buying a house unless you That is to say your wife really wants that house.

I oppose us dollars.

I’m neutral on gold although I suspect we have not seen its high in my lifetime.

[Author]

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